Two offshore operators have been hit with major fines by the Dutch gambling regulator, Kansspelautoriteit (KSA), over illegally targeting the domestic market.
The culprits are Fortaprime SRL and Novatech, which have allegedly provided Dutch players with unrestricted access to their platforms despite lacking a licence in the Netherlands.
KSA agents were reportedly able to freely create player accounts, deposit funds, and play across multiple domains hosted by offshore operators. A number of other severe breaches were noted by the regulator, such as a lack of visible age verification and the option to pay in crypto – a major red flag for facilitating money laundering.
Dishing out the fines, the regulator has based the amount on the turnover of both parties, adding that they would’ve been much higher if it weren’t for the current maximum cap of 10% on turnover set within the Dutch legislature.
Fortaprime has been handed a bill for €1.8m (£1.6m), while Novatech was hit with the highest amount ever given by the KSA to an offshore operator – a total of €24.9m.
Michel Groothuizen, KSA Chairman, said: “We determine the amount of the fine based on the (estimated) turnover that the illegal provider has achieved from players from the Netherlands.
“In doing so, we are limited by the law that says the fine may be a maximum of 10% of global turnover. Novatech earned hundreds of millions from its illegal offer, mainly from Dutch players.
“A fine of €24m sounds impressive, but without the maximum of 10%, the fine would have come to more than €100m; an amount that would be better suited to this violation.”
In addition to offering games illegally, the KSA stated that Fortaprime’s offer has been advertised by Dutch influencers, a practice that is completely prohibited in the Netherlands.
The influencers could also be subjected to a financial penalty, the regulator added.
This year will be one of the most active for the KSA, with commitments to increase player safety and to be even more heavy-handed in punishing black-market operators.
Don’t forget to subscribe to our Telegram channel!
